Correlation Between Townsquare Media and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Townsquare Media and Alstria Office at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Townsquare Media and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Townsquare Media and alstria office REIT AG, you can compare the effects of market volatilities on Townsquare Media and Alstria Office and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Townsquare Media with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Townsquare Media and Alstria Office.
Diversification Opportunities for Townsquare Media and Alstria Office
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Townsquare and Alstria is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Townsquare Media and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT and Townsquare Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Townsquare Media are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of Townsquare Media i.e., Townsquare Media and Alstria Office go up and down completely randomly.
Pair Corralation between Townsquare Media and Alstria Office
Assuming the 90 days horizon Townsquare Media is expected to generate 22.5 times less return on investment than Alstria Office. But when comparing it to its historical volatility, Townsquare Media is 1.82 times less risky than Alstria Office. It trades about 0.01 of its potential returns per unit of risk. alstria office REIT AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 341.00 in alstria office REIT AG on October 19, 2024 and sell it today you would earn a total of 193.00 from holding alstria office REIT AG or generate 56.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
Townsquare Media vs. alstria office REIT AG
Performance |
| Timeline |
| Townsquare Media |
| alstria office REIT |
Townsquare Media and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Townsquare Media and Alstria Office
The main advantage of trading using opposite Townsquare Media and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Townsquare Media position performs unexpectedly, Alstria Office can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alstria Office will offset losses from the drop in Alstria Office's long position.| Townsquare Media vs. SWISS WATER DECAFFCOFFEE | Townsquare Media vs. Yuexiu Transport Infrastructure | Townsquare Media vs. FEMALE HEALTH | Townsquare Media vs. RCI Hospitality Holdings |
| Alstria Office vs. Northern Data AG | Alstria Office vs. DATAGROUP SE | Alstria Office vs. Air New Zealand | Alstria Office vs. Fair Isaac Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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